Tariffs : The Good And The Bad

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Tariffs: The Good and the Bad Sheri Ahrendt Columbia Southern University Tariffs: The Good and the Bad In an attempt to safeguard the economy from foreign competition, the government of a country can implement a tax or fee known as a tariff. A tariff is a simple means for governments to earn income. It is not the only way that a country can collect revenue on imports, there are other regulations, subsidies, and quotas that have an impact on trade between countries, but tariffs are the easiest to collect and have been in existence for hundreds of years. The amount of tariffs that are levied vary tremendously between countries and commodities from free trade in which there are no barriers in trade, up to protectionism where the government tries to protect its economy from foreign competition. The tariff can be implemented by a specific tariff amount that is charged for each single item that is imported, or as a percentage of the value of the item known as a valorem tariff or both can be implemented simultaneously. A Harmonized Tariff Schedule is used in the United States that lays out the tariff that is to be collected on each good or service that is imported. (Suranovic, 2012, pp 11-12) History of tariffs in the United States The history of our country has seen the important role that tariffs have played in how our economy has been established. Before we were our own nation and under British rule, England forced high tariffs on the exports they accepted to protect their

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